Freight rates continue to fall! The large-scale suspension of flights during the Spring Festival did not meet the expectation of stable freight rates (2023-2-6)


Drewry released the latest World Container Freight Index (WCI), down 2%, and the composite index dropped to $2,046.51; Ningbo Shipping Exchange released the NCFI freight index, down 1% from last week. 

It seems that the shipping companies reduced the number of parallel flights to control the shipping capacity during the Spring Festival, which did not meet the expectation of maintaining the stable freight rate.

In this period, the comprehensive index except for the freight rate from Shanghai to West America rose by 1%, the freight rates of other routes are all in decline. 

As $2,046/40HQ, the Drewry WCI Composite Index is 80% below the peak of $10,377 reached in September 2021 and 24% below the 10-year average of $2,694, indicating a return to more normal levels, but still 46% higher than the average freight rate of $1,420 in 2019. 

Shanghai-Los Angeles freight rate increased by 1%; Shanghai-Rotterdam freight rate decreased by 4%;Shanghai-New York freight rate decreased by 6%;Shanghai-Genoa freight rate remained unchanged and Drewry expects that the freight rate will continue to be slightly lowered in the next few weeks. 

According to the Ningbo Shipping Exchange, the Ningbo Export Containerized Freight Index (NCFI) fell by 1.0% from the previous period 

In this issue, the South America west route market fluctuates greatly. Carriers have arranged large-scale temporary suspension after the festival, and the freight rate of the route has risen slightly. The freight index of the South America west route was 379.4 points, up 8.7% from last week.

European route: Some of the carriers didn’t resume work due to the Spring Festival holiday, and the freight of the European route market is generally stable. The freight index of European routes was 658.3 points, down 1.1% from last week; The freight index of the east-west route was 1043.8 points, up 1.4% from last week; the freight index of the west-land route was 1190.2 points, down 0.4% from last week. 

North American route: The market supply and demand have not changed significantly, and the freight rate of the route fluctuates steadily as a whole. The freight index of the US-East route was 891.7 points, down 1.6% from last week; the freight index of the US-West route was 768.2 points, down 1.3% from last week. 

Middle East route: Most of the goods carried by liners are hoarded before the festival, and the booking freight in the spot market drops slightly. The Middle East route index was 667.7 points, down 3.1% from last week.

Post time: Feb-07-2023